A distribution mannequin provides merchandise in bulk portions, sometimes to retailers or different companies, at costs decrease than these supplied to particular person shoppers. This enables these entities to accumulate items for resale, additional processing, or inside use. Examples embrace a clothes distributor offering attire to boutiques or a meals provider promoting produce to eating places.
This strategy is important for financial effectivity, enabling economies of scale that scale back per-unit prices and streamline provide chains. Its historic roots will be traced again to early buying and selling techniques, and it has advanced with developments in manufacturing and logistics. The benefits embody price financial savings, elevated market attain, and the potential for increased revenue margins for each the provider and the customer.
